Bombardier Set to Report

Bombardier (TSX:BBD.B) is scheduled to release its quarterly results on Thursday, May 9th. Given the many moving parts embedded within Bombardier’s business, quarterly numbers are a tough thing to predict. This results in a wide range of estimates and can result in large swings in the company’s stock price on earnings days.

According to Capital IQ, analysts currently expect Bombardier to have earned $0.08 per share in the first quarter on revenues of $4.2 billion. Although EPS of $0.08 looks good compared to last quarter’s EPS of $0.00, 12 months ago analysts were estimating Bombardier would earn $0.13 in this quarter. Expectations have clearly been reigned in.

Items to watch

Aside from the bottom line, two other items to keep an eye on are the company’s margins and any further updates on the soon-to-be flying C-Series aircraft.

Tabled below are the EBIT margins from BBD’s past 4 quarters. The market wants to see an improvement here in Thursday’s release.

Q1’12

Q2’12

Q3’12

Q4’12

EBIT Margin

4.7%

5.1%

4.7%

3.4%

Source: Capital IQ

The market also wants to see that the company remains on target to begin flying its new C-Series aircraft by the end of June. The company’s short sellers would love to see further delays announced for this project as the stock price would take a hit.

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